Monday, April 20, 2009

More Bank Control

I've been unsure whether this whole "not taking the TARP money back" thing was real or just malarkey from the banks who had no real means with which to pay back the money but were just trying to put up a good front.

I'm pretty sure now that it's just the Administration trying to control the banks:
Strong banks will be allowed to repay bail-out funds they received from the US government but only if such a move passes a test to determine whether it is in the national economic interest, a senior administration official has told the Financial Times.

So, the administration forced certain (good) banks to take the money, changed compensation rules to put them at a competitive disadvantage, and now won't take the money back unless it's in the "national economic interest"?

What sort of nonsense is that?!

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